Big money keeps on rolling in (December 10, 2007)

Vancouver — Despite the recent bearish trend in mining indices, financings continue to abound with exploration companies still attracting plenty of capital.

A sample of substantial financing arrangements announced over a recent one-day trading session provides an illustration of market sentiment.

Aurora Energy Resources (AXU-T, AUEGF-O) recently closed a $112-million bought-deal financing consisting of just over 6 million shares at $16 apiece and 750,000 flow-through shares at $20.50 each. Funds are earmarked for ongoing exploration at the company’s Michelin and Jacques Lake uranium deposits in Labrador’s Central Mineral Belt.

North American Palladium (PDL-T, PAL-X) has filed a preliminary prospectus in Canada and the U.S. looking to raise US$100 million through a unit offering (with each unit comprising a share and half a warrant).

The primary palladium producer will use the funds to develop the High Grade Offset zone at its Lac des Ils mine just north of Thunder Bay, Ont., and to advance its Shebandowan West project in northwestern Ontario and its Arctic platinum project in Finland.

Platmin (PPN-T, PPN-L) has queued up an underwritten deal to sell 9.5 million shares at $8.50 apiece for gross proceeds of $80.75 million. The money will be used to advance development at its Pilanesberg platinum group metals project, in the western limb of the Bushveld complex in South Africa, expected to begin production in early 2009.

Buoyed by recent exploration successes at its Hercules gold project in northwestern Ontario’s Beardmore-Geraldton greenstone belt, Kodiak Exploration (KXL-V, KXLAF-O) closed a $54-million bought-deal financing. It sold just under 2.5 million flow-through shares at $4.80 apiece and over 11 million non-flow-through shares at $3.80 each. The company plans to allocate some of the funds to new acquisitions, as well as ongoing work at Hercules.

Silver byproduct purchaser Silverstone Resources (SST-V, SVRCF-O) recently recharged its treasury after closing a $50-million underwritten financing. It sold 17.25 million shares at $2.90 each, with funds going to repay debt and potential acquisitions of additional silver production.

Mexican-focused explorer Mag Silver (MAG-T, MVG-X) raised $46.5 million in a bought-deal financing through a syndicate of underwriters — selling 3 million shares at $15.50 each.

Proceeds from the private placement are earmarked for further exploration on Mag’s Juanicipio joint venture with Industrias Peoles (IPOAF-O), in Zacatecas state, and its other Mexican Silver Belt projects.